China, PayPal and China again: the third quarter of this year was under the sign of the dragon. China not only banned Bitcoin mining, but also issued a comprehensive cryptocurrency ban.
That was a blast: After China killed off the local mining industry overnight in June this year, a so-called crypto transaction ban followed on September 24.
That means: all private crypto transactions have been banned since the end of September. To make matters worse, there is a ban on foreign exchange for doing business in China. The ban was not issued by the Chinese government, but by the country’s central bank. PBOC.
Providing services through virtual currency exchanges abroad to residents of China via the Internet is also an illegal financial activity.
said in the PBOS statement.
But the ban was apparently a smoke candle to distract attention from existing problems in the country. Rumors of a possible insolvency of the real estate company Evergrande had greatly disrupted both the country and the global financial markets. A scapegoat was quickly found: disrupting cryptocurrencies “the economic and financial orderThe Chinese central bank wrote.
Only the ban on mining in China should have an even more impressive effect. Because since June of this year, proof-of-work mining for cryptocurrencies is no longer allowed. The short-term drop in hashrate across the network was so huge that many market watchers feared possible attacks on the network.
However, as can be seen from the graph, the decline was only temporary. Sven Wagenknecht explains in his comment why the Chinese mining ban may even be positive for Bitcoin’s decentralization in the long run.
Mining is changing from east to west
A look at the current hashrate shows that the Chinese mining ban in the summer of this year did not result in a lasting collapse in network security, because it is at an all-time high of 197 EH / S. One region in particular benefited from this. : North America. Both Canadian and US mining companies had improved tremendously this year. Some companies even went public.
The Canadian company HIVE Blockchain Ltd. for example, it had acquired mining rigs for $ 66 million in July of this year and increased its hash rate by 46 percent.
British PayPal integrates Bitcoin
2020 lifted PayPal with its integration into the US by Bitcoin and Co. since the Covid collapse, which cost BTC 35 percent of its value in one day. With the UK, a second English-speaking country has been on board since July this year. It is not yet clear when integration will continue in this country.
Salvadorans: from within they take to the streets against the Bitcoin law
El Salvador’s President Nayib Bukele may be popular, but not everything he touches turns to gold. The Bitcoin law, for example, had to get off to a somewhat bumpy start: fraud of the promised US $ 30 in Bitcoin, to which all Chivo newcomers were entitled, was the order of the day. This and the high volatility of the cryptocurrency caused many people in the country to take to the streets against the law in August. An ATM in Chivo also caught fire.
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